Lecture 3: Multiple Regression Model - McCombs School of Business
Lecture 3: Multiple Regression Model - McCombs School of Business
Lecture 3: Multiple Regression Model - McCombs School of Business
SHOW LESS
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
The Data and Least Squares<br />
Y = β 0 + β 1 X 1 . . . + β d X d + ε, ε ∼ N(0, σ 2 )<br />
How do we estimate the MLR model parameters?<br />
The principle <strong>of</strong> Least Squares is exactly the same as before:<br />
◮ Define the fitted values<br />
◮ Find the best fitting plane by minimizing the sum <strong>of</strong> squared<br />
residuals.<br />
8
Change language